Politicians are inured to media demands for instant reactions. How nice to find one taking his time. James Alexander has been pondering Michael Heseltine's report on growth for almost a month and discussing it with others. Now he's written to Tarzan with his views. Here they are
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Free up the regions! Lord Heseltine delivers his report. Photograph: PA
As Leader of City of York council, I wanted to write to you about your very thoughtful contribution to the UK growth debate. I have reflected upon the recommendations made in your report and have discussed them with public sector and business leaders in York. I'd like to offer my reaction to your report if I may. I am particularly pleased to write to you as your 1990 leadership bid was one of the reasons why I became interested in politics at such an early age. I admire your work around regeneration and your consistent commitment to localism.
Firstly, I wholeheartedly welcome your commitment to localism: it is proper that towns and cities should take responsibility for creating the environment where businesses can prosper, where local economies can grow and where residents can all benefit from good jobs, incomes, housing and leisure opportunities. To do that requires the skills of both private and public sectors, working in partnership, and by aligning public sector assets with private sector investment. In fact, in York we are working to lead the way in new approaches and innovative thinking with regard to creating a better business environment. I have already created an Economic Infrastructure Fund of £28.5m to collaborate within the Leeds City Region (LCR) with other public and private sector organisations, to create further growth in the city economy. This Fund, whilst politically controversial, is now being seen by other local authorities and some in HM Government as the kind of innovation that is needed to make our investment make a real difference in the local economy.
York is a proud city but we also realise the importance of being a full partner in the LCR Local Economic Partnership and achieving the best for our residents by committing ourselves to an economic strategy and business plan for an area far greater than our city boundary. Our partnership and collaboration within LCR will ensure that we can increase the supply of jobs for our residents and attract business into the city.
There are many recommendations in your review which I certainly welcome and support.
the further devolvement of public funding and functions to the local level
the establishment of a single funding pot (without internal ring fencing) for local areas
examining the opportunity for maximising pension funds as a means of levering infrastructure investment
a proposed overarching legal duty for local authorities to have regard to economic development in the exercise of all their activities and functions
But there are some significant barriers in the way and I was reassured by the fact that your report identifies many of them. If we are serious about making city deals work, then we must begin to remove some of the 'administrative' barriers that exist because of historical central government processes. For example, the LCR is currently trying to progress the establishment of a new transport body to be set up as a Combined Authority to strategically shape transport planning and economic investment within our functional economy. The work is critical so that we can improve our networks to get skilled labour to the right places and exploit our local and sub-regional supply chains.
The Railway Children at York's National Railway Museum. They would certainly have supported a Combined Authority. Currently the process is delayed because of a four mile stretch of farmland that prevents our boundaries being contiguous. There is a local legal view that we could still set up a Combined Authority if the Secretary of State were to apply his appropriate powers. The alternative, cautious civil service view is that we should be prudent and not set up a Combined Authority unless boundaries are contiguous. I think the problem can be resolved but it is important that Government is able to delegate powers and funding to a local level without the administration and sometimes legal 'red tape' that means we can't fully exploit the freedom and opportunity that is intended. Ministers must encourage a "can do" climate in central government and amongst officials that can point out the reasons why something is a good idea, and we should explore how to take it forward rather than starting from the premise that the status quo should be retained.
I was very interested in the proposal for Local Growth Teams. I think it is a good idea and will allow LEPs to provide better insight into the barriers we face and the changes that need to be made. I think it will also support a better analysis of the type of 'enabling' activity that each locality will require. You are very welcome to trial any of that work here in York and with our partners within LCR.
The proposal about LEP boundaries not overlapping through multiple memberships is one I will need to think very hard about and then progress. The rationale in your report is clear.
There is one area not reflected by the recommendations in your review, and for completeness it is probably worth a mention:
If LEPs are to administer increased resources they need to be more accountable. With time there is a risk that LEPs will be seen as another layer of bureaucracy rather than as an asset to local economies. Without being overly prescriptive, I would like to see some BIS encouragement for LEPs to set out a better record of their achievements. This will be particularly important in the context of your recommendation for all LEPs to prepare a long term strategy and business plan for their area.
I spoke recently to Rt Hon Vince Cable MP about the importance of the British Business Bank. It is helpful that your report acknowledges the fact that there is a structural problem around long-term, patient loan finance in Britain and that the Business Bank offers a possible solution. I think this is a fundamental issue for UK competitiveness and growth.
In summary, I welcome the report you have produced. It identifies a wide range of levers capable of promoting growth, from education to infrastructure, and from planning to access to finance. The country desperately needs a nationwide strategy for growth and neither "tax and spend" nor "wait and see" is it. I hope these comments are helpful and of course would be available should you wish to discuss them. Meanwhile, I would urge you to impress on Government ministers to respond as soon as practicable to your recommendations. We do not have the luxury in the current economic climate to prevaricate and delay implementing many of your proposals.
Finally, a quick request from me. You may be aware that Yorkshire is bidding to host the opening stages of the Tour de France in two years time. It is exactly the type of event to build upon the amazing success of the Olympic Games in the summer. It also offers a chance to put some of our northern cities in the spotlight and generate a positive impact for their economies. I'd be grateful for your public support for our campaign.
James Alexander is Labour leader of York city council. Lord Heseltine's report can be read here. He was given the freedom of Liverpool earlier this year by another Labour council leader, elected mayor Joe Anderson.
